Abbott Laboratories — Earnings Quality Grade D
ABT · Healthcare
Significant concerns
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 65 days, change +5 days YoY
AR outpaced revenue for 2 consecutive years
Revenue 5.7%, CFFO 11.8%. Cash follows revenue
Expense Quality
Inventory 4.7% vs COGS 3.3%. Normal
CapEx growth -1.6% vs revenue 5.7%. Normal
SG&A/Gross Profit = 49.3%. Normal
Gross margin 56.4%, change +1.0pp. Stable
Cash Flow Quality
CFFO/NI = 1.47. Profits backed by cash
FCF $7.4B, FCF/NI = 1.13
Accruals ratio = -3.5%. Low accruals
Cash $8.9B covers 64% of debt $13.9B
Balance Sheet Health
Goodwill+Intangibles $29.6B = 57% of equity. Over 50%
Debt/EBITDA = 1.1x. Healthy
Other assets 11.9% vs revenue 5.7%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -1% YoY. Normal
Manipulation Score
M-Score = -2.50 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09